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Question:

An analyst who expects the economy to experience stagflation should most appropriately recommend investing in:

A commodities.
Explaination

Stagflation is a period of economic contraction with increasing inflation, typically brought on by a sharp decrease in aggregate supply. Investments in equities tend to perform poorly in an economic contraction due to decreasing profitability of companies. Fixed income investments decrease in price when nominal interest rates increase due to increases in inflation. Commodity prices tend to increase with inflation.